Nifty posts nearly 150 point late rally, closes down 159
Nifty pulled off a nearly 150-point bounce in the final minutes of Tuesday's trading, even though the day was mostly in the red.
The index closed at 24,614, down 159 points, or 0.64% overall; the day's high was 24,703.
This is the second day in a row we've seen a big last-minute spike (it jumped around 200 points late on Monday too).
New CAS rules ignite closing volatility
A new set of Closing Auction Session (CAS) rules kicked in on August 3, changing how F and O stock prices are set after regular trading ends.
This, plus some profit booking in big financial and IT stocks, made things extra choppy.
Analysts flagged price swings and forced square-offs between 3:30 to 3:40pm as initial teething issues, with Vinod Nair, Head of Research at Geojit Investments, saying exchanges and the market regulator need to address the discrepancies for retail investors.